"We clearly continue to benefit from our ongoing investments in product innovation and have great momentum in our new businesses across Alphabet," Ruth Porat, chief financial officer of Alphabet, said.

Google's results are in line with the recent WFA and Ebiquity's recent report on digital advertising which found most of the world's advertisers plan to increase digital ad spending it the coming year, especially in online video where 89 percent plan to increase spending.

This is despite the advertisers citing key concerns of viewability (90 percent of respondents see this as a "major concern") and lack of transparency (76 percent).

The first quarter results do not break out revenue gained from Alphabet's hardware bets such as Google Home devices.

Under "other revenues" however, which also includes Google's cloud-based services, Google reported revenues of $3 billion, up 50 percent from the same period last year.

Pivotal Research Group senior analyst Brian Wieser commented that Alphabet's strong performance provides confidence that the company can continue to grow while protecting its margins in the near term. In the long-term however, it will likely have to accept trade-offs between revenue growth, margin improvement and capital expenditures in order to diversify and include new revenue streams while investing to protect its existing ones, he added.